Investment Officer Glenville Henderson told the Government Employees’ Retirement System of the Virgin Islands Board of Trustees Thursday that its investment portfolio essentially broke even in January even though $20 million had to be withdrawn to pay retirees’ annuities. He attributed most of the earnings to the market starting off the year 2023 strongly.
However, CFO Denise Jeremiah told the board, “As far as I am concerned, we still have a cash flow problem.” She made her statement after being questioned about the profitability of the loan program, which was discontinued in 2015. Legislators and GERS members have been vocal about getting the loan program restarted (even threatening to sue). More pressure has been put on the board since the V.I. government committed huge sums to GERS to keep it from insolvency.
When questioning Jeremiah, Trustee Ronald Russell pointed out that it was a program that brought in a profit to GERS. The board has made public its intention to institute the program on a limited basis in October 2024 and completely in 2025.
The treasurer’s January report differs little from last year’s January report. It showed the GERS received about $8 million in employer contributions and $5 million in employee contributions and about $14 million in total income. Total disbursements were about $25 million. The system losing $11 million in a month is better than its average.
Havensight Mall, owned by GERS, generated much more income this January than in January 2022. This year the system reaped $446,000 in rent from tenants. Last year it only collected $202,000. After disbursements, GERS showed a $219,000 income from Havensight. Last year, the income for January was only $5,000.
The board approved at the special meeting a petty cash fund of up to $1,500 for Havensight Mall. Austin Nibbs, administrator of the system, said the current process for paying minor expenses was “very inefficient.”
At the end of the meeting, the board convened an executive session closed to the public. Nibbs told the Source that in the session, the board discussed legal issues concerning the West Indian Company and a legal matter that would authorize the administrator to pay out $63,000.
